Saudi Press

Saudi Arabia and the world
Friday, Aug 22, 2025

IMF boss warns of 'painful' Brexit

IMF boss warns of 'painful' Brexit

Brexit will add to world economic woes, IMF managing director Kristalina Georgieva says.

he new head of the International Monetary Fund has warned that Brexit in whatever form will be "painful", adding to the effects of a global slowdown.

Kristalina Georgieva said the split will hurt not only the UK and European Union, but also low income countries with economic ties to them.

IMF data show that growth has already slowed in almost 90% of the world.

"It is very obvious that this [Brexit] is going to be painful," she told the BBC.

Ms Georgieva said UK politicians will have to figure out how to shield people hurt by Brexit - but the options available to fund those measures are limited.

"The choices are not that many - you either borrow or you look at the [tax] increase," she said.

Brexit: Deal essentially impossible, No 10 source says after PM-Merkel call

IMF boss Kristalina Georgieva warns of 'painful' Brexit

Tony Blair: 'No-deal Brexit risks UK break-up'

Ms Georgieva, who spoke to the BBC ahead of the IMF's annual meeting in Washington next week, said the IMF is also concerned about the effect of Brexit outside of the UK.

"I particularly worry about low-income countries that are in a significant way dependent on the European Union and the UK," she said.

"Unfortunately this is not great news," she said of Brexit. "And it comes at a time of compounded other factors that slow down growth."


Trade war


The US and China are locked in a trade war over state subsidies and technology theft that has led the two sides to impose tariffs on billions of dollars worth of each other's goods.

US President Donald Trump has also picked fights with allies such as Europe and Canada over cars, steel and aluminium.

The disputes have brought trade growth to a "near standstill" and hurt manufacturing and business investment, Ms Georgieva said.

In 2020, the IMF predicts that they will knock almost 1% off of global growth in 2020 - or roughly $700bn.

"What is most significant is that it is not the direct impacts of tariffs that are most harmful. Most harmful is the loss of confidence," Ms Georgieva said.

'Bigger loser'
The White House has said the tariffs are meant to force China to change its policies and dismissed concerns about growth, arguing that any harm to the US pales in comparison to the damage on China.

"That is not a good excuse if you can say, you know what, I'm a loser, but you're a bigger loser than me," Ms Georgieva said.

"I don't think that this is what people expect from leadership."

Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Dogfights in the Skies: Airbus on Track to Overtake Boeing and Claim Aviation Supremacy
Tim Cook Promises an AI Revolution at Apple: "One of the Most Significant Technologies of Our Generation"
Are AI Data Centres the Infrastructure of the Future or the Next Crisis?
Miles Worth Billions: How Airlines Generate Huge Profits
Zelenskyy Returns to White House Flanked by European Allies as Trump Pressures Land-Swap Deal with Putin
Beijing is moving into gold and other assets, diversifying away from the dollar
Cristiano Ronaldo Makes Surprise Stop at New Hong Kong Museum
Zelenskyy to Visit Washington after Trump–Putin Summit Yields No Agreement
High-Stakes Trump-Putin Summit on Ukraine Underway in Alaska
Iranian Protection Offers Chinese Vehicle Shipments a Cost Advantage over Japanese and Korean Makers
Saudi Arabia accelerates renewables to curb domestic oil use
Cristiano Ronaldo and Georgina Rodríguez announce engagement
Asia-Pacific dominates world’s busiest flight routes, with South Korea’s Jeju–Seoul corridor leading global rankings
Private Welsh island with 19th-century fort listed for sale at over £3 million
Sam Altman challenges Elon Musk with plans for Neuralink rival
Australia to Recognize the State of Palestine at UN Assembly
The Collapse of the Programmer Dream: AI Experts Now the Real High-Earners
Armenia and Azerbaijan to Sign US-Brokered Framework Agreement for Nakhchivan Corridor
British Labour Government Utilizes Counter-Terrorism Tools for Social Media Monitoring Against Legitimate Critics
WhatsApp Deletes 6.8 Million Scam Accounts Amid Rising Global Fraud
Nine people have been hospitalized and dozens of salmonella cases have been reported after an outbreak of infections linked to certain brands of pistachios and pistachio-containing products, according to the Public Health Agency of Canada
Texas Residents Face Water Restrictions While AI Data Centers Consume Millions of Gallons
Tariffs, AI, and the Shifting U.S. Macro Landscape: Navigating a New Economic Regime
India Rejects U.S. Tariff Threat, Defends Russian Oil Purchases
United States Establishes Strategic Bitcoin Reserve and Digital Asset Stockpile
Thousands of Private ChatGPT Conversations Accidentally Indexed by Google
China Tightens Mineral Controls, Curtailing Critical Inputs for Western Defence Contractors
OpenAI’s Bold Bet: Teaching AI to Think, Not Just Chat
BP’s Largest Oil and Gas Find in 25 Years Uncovered Offshore Brazil
JPMorgan and Coinbase Unveil Partnership to Let Chase Cardholders Buy Crypto Directly
British Tourist Dies Following Hair Transplant in Turkey, Police Investigate
WhatsApp Users Targeted in New Scam Involving Account Takeovers
Trump Deploys Nuclear Submarines After Threats from Former Russian President Medvedev
Germany’s Economic Breakdown and the Return of Militarization: From Industrial Collapse to a New Offensive Strategy
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
Iranian President Reportedly Injured During Israeli Strike on Secret Facility
Kurdistan Workers Party Takes Symbolic Step Towards Peace in Northern Iraq
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
AI Raises Alarms Over Long-Term Job Security
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Russia Formally Recognizes Taliban Government in Afghanistan
×